111. Financing of sub-regional infr

111. Financing of sub-regional infrastructure projects faces far more complex challenges
than national projects. Apart from the usual challenges associated with financing large
infrastructure projects (e.g., long implementation period, sovereign risks), the development of
regional investments also require the support of, and coordination between, two or more
countries, which makes the process more complicated. Private sector finance is also
important for the middle income countries of IMT-GT and BIMP-EAGA. A critical factor
affecting the attraction of private sector finance for sub-regional projects is the lack of
adequate project preparation which could deter public-private partnerships (PPPs). The lack
of adequate and reliable technical and financial information on PPP projects can hamper the
evaluation of risks, not only from the point of view of the private sector entity, but also from
the point of view of the public sector. A sub-regional project development facility is hence
seen as crucial in providing resources for the preparation of pre-feasibility and feasibility
studies.